Jamba Inc. swung to a loss in the second quarter ended June 28 as it booked the effects of its refranchising program, the company said Thursday.
Emeryville, Calif.-based Jamba said the net loss in the quarter was $2.5 million, compared to a $6.3 million profit in the same period last year. Revenue fell 60.2 percent, to $21.5 million, from $54.1 million in the same period last year.
“The [revenue] decrease is primarily due to the reduction in the number of company-owned stores pursuant to the company’s refranchising strategy, and was partially offset by an increase in company-owned comparable store sales of 5.7 percent,” Jamba said in a statement.
Company units saw average check increase about 430 basis points, and transaction counts rise about 140 basis points.
Jamba sold 179 company-owned locations in its 2015 refranchising initiative, leaving it with 68 company-owned locations at the end of the second quarter. Jamba had 817 franchised units at the end of the quarter, including 751 domestic units and 66 international locations.
Jamba systemwide same-store sales increased 4.2 percent in quarter, with franchised same-store sales reporting a 4-percent increase.
“We are making steady progress against our five core strategies outlined earlier this year,” said David Pace, Jamba CEO, in a statement. “Through our continued focus on building a strong foundation, we will capture the opportunity to grow this iconic brand and inspire healthy living.”
Pace said in May that the Jamba Juice parent would be moving its headquarters from Emeryville, Calif., to Plano, Texas.
Jamba said its board had approved a new $20 million share repurchase authorization for common stock over a two-year period, subject to available cash resources.